There’s now a Beta release with an early version of hardware accelerated video playback:
On my Transformer TF300 it’s much better than the old software playback, but still can’t handle 1080P reliably. 720P isn’t bad and SD seems to play without issues. However, any .mp4 file causes Xbmc to crash, so there are still major problems to fix.
Looking forward to an official release with some performance improvements.